Schmidt declined to reveal the violation that led to revocation at Badger Guns, which sold firearms used to wound Milwaukee police officers and has been a top seller of crime guns. Milwaukee police launched an undercover operation outside the store after the shootings, finding felons frequenting the store and using the range. In response to the operation, Allan posted the sign above in late 2009.

But according to a ATF document, "Violations commonly cited in revocation cases include failure to account for firearms, failure to verify and document purchaser eligibility, failure to maintain records requisite for successful firearms tracing, and failure to report multiple sales of handguns."

Because his license was revoked, Allan will likely be barred from obtaining another firearms-selling license. Allan appealed the revocation for more than a year. He could have taken his fight against the revocation to federal court and would likely have been able to sell guns in the meantime -- the same path taken by Shawano Gun & Loan near Green Bay. That store ultimately lost and stopped selling guns earlier this year.

ATF's Schmidt said the agency and Badger Guns reached an agreement that Allan could sell guns until the end of the year. At that time, Allan could sell his inventory to another federal firearms license holder or transfer all the guns into his personal collection and sell them privately, at gun shows and elsewhere, without doing any background checks. Allan has not indicated what he plans to do with the guns.

A Journal Sentinel investigation published in December found ATF rarely tries to revoke or deny renewal of firearm licenses. When the agency does try, it succeeds just half the time and takes an average of 15 months to process the action, an analysis of ATF data by the newspaper found. The process can drag on for years if appealed to court.

Allan said several people have expressed an interest in taking over gun sales at the location on S. 43rd St. including Allan's brother, Michael, who works at the store now. Neither of the Allan brothers would comment on that last week. Adam Allan said he will remain involved in the operation, running the store's lucrative shooting range.

It will be the second change in license at the store in recent years.

In 2006, ATF investigators recommended revoking Badger Outdoors' license, but there was no revocation. That license was surrendered, and co-owner Mick Beatovic retired. The other owner, Wally Allan, went to work for his son, Adam, who pulled a new license and changed the name to Badger Guns. Beatovic moved to Arizona but remains landlord of the store.

The changes made in 2006 created what one federal official called a "clean slate," erasing violations found by federal regulators over 17 years at Badger Outdoors - which had been the top seller of crime guns not just in Milwaukee but the nation in 2005 with 537 such guns, according to ATF records. In less than two years, six Milwaukee police officers were wounded with guns sold by Badger Guns or Badger Outdoors.

About John Diedrich

John Diedrich writes about crime, federal issues, ultimate fighting and guns. His investigations have been honored with various national awards including a George Polk Award for reporting on rogue gun stores and an IRE award for exposing botched undercover federal stings.

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